Shares of Northwest Biotherapeutics, Inc. (OTCMKTS:NWBO) powered high on equity research firm ValueEngine initiating coverage of the stock with a ‘buy’ rating. The stock’s sentiments in the market also appear to have received a boost on the announcement of a $5 million bridge funding from long-term angel investors.
Northwest Biotherapeutics Price Analysis
After a period of consolidation on coming under immense short selling pressure at the start of the year, Northwest Biotherapeutics has started showing signs of bottoming out. The stock has already powered out of a tight trading range, alluding to the fact that bulls are slowly regaining control from short sellers.
The stock finding support above the $0.18 and $0.22 trading range is a critical development that attests to an emerging uptrend. After the recent spike higher, the stock faces immediate resistance at the $0.30 mark as the upward momentum continues to gather pace.
A breach of the $0.30 mark should bring to an end a sell-off wave that had threatened to push the stock to all-time lows. Above the $0.30 mark, Northwest Biotherapeutics should be on its way to the $0.36 mark, seen as the next substantial resistance level.
On the downside, the stock faces immediate support at the $0.22 level. Short sellers would regain control over the stock dropping and closing below the $0.22 mark. However, if recent price action activity is anything to go by, then the stock looks set to make a run for this year highs.
What Does Northwest Biotherapeutics Do?
Northwest Biotherapeutics bills itself as a biotechnology company focused on the discovery and development of personalized immune therapies for cancer. The company develops products on top of proprietary, DCVax platform that relies on dendritic cells to stimulate patient’s immune system to attack cancer.
Buy Rating Boost
Equity research firm ValueEngine upgrading Northwest Biotherapeutics shares to a ‘buy’ form a ‘hold’ appears to have strengthened investors confidence in the stock. The positive share rating follows the announcement that the company has made a significant milestone in the development of a treatment for Glioblastoma multiform, a type of brain cancer. Northwest Biotherapeutics is also working on a novel treatment for inoperable solid tumor cancer.
DCVax-L is the company’s lead product for the treatment of newly diagnosed Glioblastoma. The company has so far collected data from an independent contract research organization. The candidate drug has shown an excellent safety profile which alludes to the Buy rating by ValueEngine.
“The safety profile of DCVax-L is also quite encouraging, with almost no serious adverse events related to the treatment, no necessity for additional drugs to manage side effects and no hospital in-patient stays as are often required with certain other kinds of immune cell therapies,” said CEO Linda Powers.
$5 Million Capital Raise
In a bid to accelerate the ongoing clinical trials, Northwest Biotherapeutics has closed a $5 million Bridge funding from angel investors. The company raised the amount on the issuance of Notes that have a one-year maturity, subject to the company repaying the loan at any given time.
In addition, the company has reached an agreement with the company’s CEO on a further extension of Demand Notes. The Chief Executive Officer provided the company with $5.4 million in funding early in the year. The CEO has since agreed to extend the maturity of the notes by one year from the funding dates.
The raising of additional funds and the extension of maturity dates for existing Demand Notes should strengthen the company’s financial position. For starters, the company intends to use proceeds from the capital raises to finance ongoing clinical programs among other operations.
What Next For Northwest Biotherapeutics
Northwest Biotherapeutics has traded in a tight trading range for the better part of the second half of the year. However, in recent trading sessions, the stock has powered through the trading range an indication of building buy activity on the stock.
The stock has already started recording increased average transaction volume an indication of increased investor’s activity around the stock. Increased trading activity has helped push the stock higher, a trend set to continue as investors take note of the company’s pipeline of candidate drugs for cancer treatment.
For early movers, now may be the best time to consider Northwest Biotherapeutics a long-term play as it has bottomed out from this year’s lows.
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Disclosure: We have no position in NWBO and have not been compensated for this article.